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The latest VW diesel deal, which has yet to be ratified by the court, is expected to include buybacks for some 20,000 older models that cannot be fixed.

VW diesel saga hits 3.0-liter TDI models: Buybacks happening

Report: Wolfsburg will buy back older models, fix 60,000 others

November 17, 2016

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Volkswagen has reached a tentative agreement with U.S. agencies over 80,000 vehicles equipped with 3.0-liter V6 diesels spanning three VW Group brands, Reuters reports. The parent company plans to buy back at least 20,000 older TDI vehicles, believed to be VW Touareg TDI and Audi Q7 3.0 TDI SUVs from certain model years; the rest will be repaired via software updates. The deal has not been finalized, and negotiations are still ongoing prior to a Nov. 30 court appearance along with various stakeholders.

Of the 20,000 older TDI vehicles that will pose a more serious technical challenge to make compliant with U.S. regulations, a mix of repairs and buybacks is expected, suggesting owners may have the option of selling the vehicles or obtaining a technical fix. A software fix is expected for the remaining 60,000 vehicles from the Audi, Porsche and Volkswagen brands.

The diesel recall program is expected to affect Audi A6, A7, A8, A8L, Q5 and Q7 TDI models, in addition to the Porsche Cayenne Diesel and the Volkswagen Touareg TDI. At this time, only the Touareg and Q7 are expected to be part of a buyback program, the outlines of which have not been confirmed yet. It has been reported that a portion of the Q7 and Touareg vehicles from the 2009 and several later model years may be too expensive to bring into compliance, since they feature older versions of the 3.0-liter V6 TDI engines.

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The tentative deal is expected to avert a complete buyback for over 80,000 vehicles, though the current solution is still thought to cost the automaker hundreds of millions. Earlier this month Audi allocated over $600 million to the 3.0-liter diesel issue, fueling expectations of a costly partial buyback for the affected models.

No details of a possible compensation program for owners who choose to sell back their vehicles or have them repaired have been published, as lawyers representing owners in the negotiations have pointed out.

"No settlement agreement has been reached on behalf of owners and lessees of Volkswagen 3.0-liter TDI vehicles," said Elizabeth Cabraser, lead attorney for a group of owners. "Any resolution must grant these consumers similar benefits -- including a choice between a buyback or a fix, if approved by regulators -- as were offered to class members in the 2.0-liter vehicle litigation. While an agreement between the EPA and Volkswagen may address some of the environmental damage, it does not hold the company accountable for the harm caused to consumers. We will continue to pursue a fair resolution on their behalf."

At least 21,000 older Volkswagen Touareg TDI and Audi Q7 3.0 TDI models sold in the U.S. could end up being bought back by the automaker as part of a 3.0-liter TDI recall, Reuters reports. ...

It remains to be seen what form of compensation owners of 3.0-liter diesel vehicles may be offered. Earlier this year, Volkswagen agreed to pay owners of 2.0-liter diesel vehicles from the VW and Audi brands between $5,100 and $10,000 each, in addition to the pre-crisis values of the cars. The automaker allocated just over $10 billion to the buyback effort, which will see over 400,000 cars bought back over a span of two years. Volkswagen also plans to fix several thousand 2.0-liter diesel models whose owners opt to keep their cars, though the EPA has yet to approve a proposed technical fix by the automaker.

"The strong praise the 2.0-liter agreement received from affected owners and lessees, environmental and consumer groups, auto industry analysts and ultimately the Court confirms this is the model that should be followed in any 3.0-liter resolution," Cabraser added. "Per the Court’s order, we cannot comment further on the settlement negotiation process."